Support for Russia's War Against Ukraine: The USA Outlines Consequences for Chinese Companies.

US Treasury Secretary Janet Yellen warned China about the consequences awaiting Chinese companies if they provide assistance to Russia in its aggression against Ukraine.

Yellen made this statement during a virtual meeting with Chinese Vice Premier He Lifeng, as reported by Voice of America.

'She stressed the significant consequences that companies, including Chinese ones, will face if they provide material support to Russia's war against Ukraine,' the Treasury Department said.

In mid-December, the United States imposed sanctions on two Chinese citizens and a related company based in the United Arab Emirates. The US accuses them of acting as agents to facilitate money laundering and cryptocurrency conversion services for North Korea.

At the beginning of December, the US imposed new sanctions aimed at limiting China's ability to produce advanced microchips that can be used for modern weapons and military artificial intelligence technologies.

According to the US Department of Commerce's decision on December 2, 140 companies, including microchip factories and investment firms financing the modernization of the Chinese military, were added to the sanctions list.

In her conversation with He Lifeng, Yellen also expressed concern about 'malicious cyber activities' carried out by Chinese state actors.

'Secretary Yellen... expressed serious concerns regarding the malicious cyber activities of state-sponsored actors from China and how this may affect bilateral relations,' the Treasury Department reported, describing the conversation as candid, deep, and constructive.

Cybersecurity Issues and Microchip Production

As Reuters reminds, last month the Treasury Department reported that an unspecified number of its computers were hacked by Chinese hackers in what it called a 'major incident' following the breach of contractor BeyondTrust, which provides cybersecurity services.

These attacks occurred as the Biden administration was working to improve ties with China and enhance management of competitive relations, including through the establishment of economic and financial working groups.

Non-Market Policies and Excess Industrial Capacity

Yellen also warned China about non-market policies and Beijing's practices regarding excess industrial capacity that harm American workers and companies.

Yellen gave a similar message during a meeting with He in Beijing in April, warning him to rein in excess industrial capacity before President Joe Biden announced a sharp increase in tariffs on Chinese electric vehicles, batteries, solar products, and semiconductors.

Yellen warned that if these issues are not addressed, they will continue to negatively impact bilateral economic relations between the US and China.